Wellesley, MA

The Massachusetts Residential Renewable Energy Tax Credit offers homeowners a valuable financial incentive when they install qualifying solar or wind energy systems in their primary residence. This state tax credit allows you to claim 15% of your net expenditure (after federal credits and rebates) on renewable energy equipment, up to a maximum of $1,000. This credit directly reduces your Massachusetts personal income tax liability, potentially putting money back in your pocket while you enjoy the benefits of clean energy.

To qualify, you must be a Massachusetts resident who owns or rents your primary residence and is not claimed as a dependent on another person’s tax return. The renewable energy system must be primarily for residential use (at least 80% residential usage), and the equipment must be new when you purchase it. If your credit exceeds your tax liability in a given year, you can carry over the remaining amount for up to three subsequent tax years. Remember that structural elements serving dual purposes (like roofs or windows) don’t qualify, but dedicated solar equipment such as collectors, storage tanks, and wind generators are eligible expenses.

Massachusetts offers a Property Tax Exemption for residential solar systems that provides a 100% exemption from property taxes on qualifying solar installations for 20 years. This means your property taxes won’t increase due to the added value of your solar system, helping you maximize your solar investment while reducing your carbon footprint.

To qualify, your solar system must either: 1) produce no more than 125% of your property’s annual electricity needs, 2) have a capacity of 25 kilowatts or less (verified by state documentation), or 3) have a payment in lieu of taxes agreement with your municipality. The exemption applies to both owned and leased systems, including those co-located with energy storage systems. Note that this exemption doesn’t apply to community solar projects or systems owned by utility companies. For specific details about how this exemption applies to your property, contact your local tax assessor.

The Massachusetts Solar Equipment Sales Tax Exemption is a valuable state incentive that eliminates the 6.25% state sales tax on solar energy equipment purchases. This exemption applies to all solar system components including panels, inverters, mounting hardware, and other equipment necessary for a complete solar installation. For the average homeowner, this can translate to savings of $1,000-$1,500 on a typical residential solar system.

To qualify for this exemption, you must purchase solar equipment that will be used for residential or commercial purposes in Massachusetts. There is no application process required – the exemption is automatically applied at the point of sale when purchasing from a registered solar equipment vendor. This incentive has no expiration date and is available year-round with no annual caps. When combined with other incentives like the federal tax credit, this sales tax exemption helps make solar more affordable for Massachusetts homeowners.

The ConnectedSolutions Battery Incentive program in Massachusetts rewards homeowners for allowing their battery storage systems to support the electrical grid during peak demand periods. Through this Mass Save initiative, you can earn $275 per kilowatt (kW) for your battery’s average contribution during summer events. For a typical 5-kW battery system, this could mean up to $1,375 in annual incentives while helping reduce strain on the grid during high-demand periods.

To qualify, you must be a customer of Cape Light Compact, Eversource, or National Grid with a battery system smaller than 50kW. Your battery can be installed with new solar panels, added to an existing solar system, or set up as a standalone system. The program runs during summer months (June 1-September 30), with events occurring between 3:00 p.m. and 8:00 p.m. up to 60 times per summer, each lasting a maximum of three hours. Additionally, eligible homeowners can access 0% financing through HEAT Loans of up to $25,000 for battery installations, making this clean energy upgrade more affordable.

The Solar Massachusetts Renewable Target (SMART) Program is a state incentive that pays Massachusetts homeowners directly for the solar energy their systems produce. This tariff-based program is administered by the Department of Energy Resources (DOER) and implemented through the three major utility companies in Massachusetts: Eversource, National Grid, and Unitil. Rather than receiving tax credits or rebates, you receive regular payments from your utility company based on your system’s production.

The SMART Program works on a declining block structure with 3,200 MW of total capacity. Each block offers a specific incentive rate that decreases as more solar is installed across the state. Depending on your system’s characteristics, you may qualify for additional incentives (called adders) for features like energy storage batteries, low-income household status, or installation on brownfields. The base compensation rates vary by utility territory, system size, and current block availability, with some blocks potentially offering $0.00 incentive rates due to higher electricity prices.

To qualify, your home must be served by one of the three participating utilities, and your solar installation must meet specific technical requirements. The program has special considerations for system siting and land use that may affect eligibility. Applications are processed through CLEAResult, the designated Solar Program Administrator, who reviews submissions before recommending approval to DOER.

If you’re considering solar for your home, it’s important to check current block availability and incentive rates on the SMART Program website, as these change regularly as capacity fills up. For systems that may receive a $0.00 incentive rate, homeowners should consider alternative benefits like direct participation in the Renewable Portfolio Standard (RPS) market. The program is undergoing regular updates, with recent proposals published in 2024 that may affect future incentive structures.

Net Metering in Massachusetts allows solar homeowners to receive full credit for excess electricity their system sends back to the grid. When your solar panels produce more electricity than your home uses, this surplus energy flows to the utility grid, and you receive a 1:1 credit on your bill. This means for every kilowatt-hour (kWh) you export, you get credited at the same retail rate you would normally pay for electricity.

The major utilities in Massachusetts (National Grid, Eversource, and Unitil) all offer this 1:1 credit structure, with an important benefit: unused credits carry over indefinitely as a dollar value on your account. Unlike some states that reset credits annually, Massachusetts allows you to bank these credits without expiration. However, it’s worth noting that utilities will not issue cash payments for accumulated credits. For municipal utilities like Taunton Municipal Light Department, the structure differs slightly, with excess monthly production credited only at the Generation Rate plus Power Cost Adjustment (approximately 6.5-9.5 cents/kWh).

To qualify for net metering in Massachusetts, you must be a customer of a participating utility with a properly installed and inspected solar system. There is no specific deadline to enroll, as this is an ongoing program, but connecting your system requires utility approval and proper interconnection agreements. Before installing solar, it’s advisable to check with your specific utility for any system size limitations or special requirements that may apply to your property.